Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 20 April 2012:

Decision Reference: MD-C-2012-0046
Decision Summary Title :	Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012 - Licences		Date of Decision Summary:	20th April 2012
Decision Summary Author:	International Relations		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012 – Licences		Date of Written Report:	20th April 2012
Written Report Author:	International Relations		Written Report : Public or Exempt?	Public
Subject: Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012 – Licences
Decision(s): The Minister in pursuance of Article 9 of the Money Laundering and Weapons Development (Directions) (Jersey) Law 2012 decided – (a) to grant licences to exempt certain transactions and business relationships that are subject to the provisions of the Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012 and (b) to revoke the licences granted on 19 January 2012.
Reason(s) for Decision: The Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012 protects the financial services sector in Jersey from the risk of unwittingly being used to facilitate money laundering activities and financing of terrorism, and signals to Iran and the international community that Jersey considers this risk to be significant. In effect, the Order prohibits financial institutions in Jersey from taking part in any transaction or business relationship with an Iranian financial institution, subject to certain exceptions as set out in licences. The Chief Minister has, on 19 January 2012, approved certain licences under Article 9 of the Law. Those licences previously issued included references to the “EU Regulation” defined as Council Regulation (EU) No. 961/2010 on restrictive measures against Iran. That EU Regulation has now been revoked, and in its place Council Regulation (EU) 267/2012 has been given effect in Jersey by the Community Provisions (Restrictive Measures) (Iran) (Jersey) Order 2012. Accordingly, it is necessary to update the references in the licences to the current legislation. These amended licences exempt transactions with designated persons for certain purposes and in certain circumstances: Humanitarian activities, medicine, foodstuffs and healthcare; Personal remittances under € 40,000 which are not in the course of business; Provision of insurance to Iranian persons, entities or bodies which is exempt under Council Regulation (EU) No.267/2012; Holding of asset-frozen Iranian banks’ accounts; activities which would otherwise be exempt under Article 29 of Regulation (EU) No.267/2012 (asset freezing exemptions); and activities of a relevant person which are currently licensed under the asset-freezing regime; Relevant persons holding accounts in the name of designated persons.
Resource Implications: There are no resource implications arising from this decision.
Action required: The Chief Minister is requested to approve and grant the licences as attached and to revoke the previous licences. The Chief Minister’s Department should – (a) forward a copy of this decision to the States Greffe and request that the new licences are published with the Ministerial Decision; and (b) take other steps as appropriate to bring notice of the licences to the attention of relevant persons.
Signature:		Position: Senator I.J. Gorst, Chief Minister
Date Signed:		Date of Decision (If different from Date Signed):

Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012 - Licences

Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012

IRAN FINANCIAL RESTRICTIONS

GENERAL LICENCES 4/2012

Granted in pursuance of Article 9 of the Money Laundering and Weapons Development (Directions) (Jersey) Law 2012

1) The following general licences are granted by the Chief Minister.

2) The licences exempt the acts specified below from the requirements contained in the Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012.

3) The licences:

a) are of indefinite duration;

b) may be varied or revoked at any time.

Definitions and interpretation

4) In these licences:

a) “EU Regulation” means Council Regulation (EU) No.267/2012 on restrictive measures against Iran;

b) “relevant person” has the same meaning as in the Money Laundering and Weapons Development (Directions) (Jersey) Law 2012;

c) “designated person” has the same meaning as in the Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012;

d) “transfer of funds” includes a transfer, whether made electronically or not, executed in several operations which appear to be linked, as well as a transfer executed in a single operation;

e) a reference to an amount in euro (€) includes a reference to the equivalent amount in another currency;

f) “permitted transaction” means a transfer of funds from one individual to another, each person acting in their private capacity, where the payment is not made in the course of any business relationship or transaction; and

g) “frozen account” means an account of a designated person also listed in Annex VIII or Annex IX of the EU Regulation.

GENERAL LICENCE 1:

HUMANITARIAN BUSINESS RELATIONSHIPS AND TRANSACTIONS

A relevant person may make a transfer of funds to, or receive a transfer of funds from, a designated person, where:

a) the sum transferred or received is under €40,000; and

b) the funds are for foodstuffs, healthcare, medical equipment or for humanitarian purposes.

For the avoidance of doubt, this licence does not displace the requirements under the EU Regulation and the Community Provisions (Restrictive Measures – Iran) (Jersey) Order 2012, as amended, in relation to prior notification of transfers of funds of over €10,000.

Any such transactions involving transfers of € 40,000 or more must be authorised by individual licence for which application may be made to the Chief Minister.

The general licence does not permit any payment of funds to a person or entity subject to an asset freeze under the EU Regulation or the Community Provisions (Restrictive Measures – Iran) (Jersey) Order 2012, as amended. An individual licence may be requested for such a payment.

GENERAL LICENCE 2:

PERSONAL REMITTANCES

A relevant person may make a transfer of funds to, or receive a transfer of funds from, a designated person, where:

a) the sum transferred or received is under €40,000; and

b) the transfer is for the purposes of a permitted transaction.

Any such transactions involving transfers of € 40,000 or more must be authorised by individual licence for which application may be made to the Chief Minister.

GENERAL LICENCE 3:

INSURANCE/REINSURANCE

Provision of insurance or reinsurance

A relevant person may provide insurance or reinsurance to a designated person where such provision is permitted under the EU Regulation and the Community Provisions (Restrictive Measures – Iran) (Jersey) Order 2012, as amended.

Transfers in relation to insurance or reinsurance

A relevant person may make a transfer of funds to, or receive a transfer of funds from, a designated person in connection with insurance or reinsurance which is permitted under the EU Regulation and the Community Provisions (Restrictive Measures – Iran) (Jersey) Order 2012, as amended.

For the avoidance of doubt, this licence does not displace the requirements of Article 21 of the EU Regulation and the Community Provisions (Restrictive Measures – Iran) (Jersey) Order 2012, as amended.

GENERAL LICENCE 4:

ASSET FREEZING EXEMPTIONS AND LICENSED ACTIVITIES

Maintaining a frozen account

A relevant person may continue to hold a frozen account.

Crediting a frozen account

A relevant person may credit funds to a frozen account, in accordance with Article 20 of the EU Regulation and the Community Provisions (Restrictive Measures – Iran) (Jersey) Order 2012, as amended.

Licensed activities under the EU Regulation and Community Provisions (Restrictive Measures – Iran) (Jersey) Order 2012, as amended.

A relevant person who has, before the date of this licence, been granted an authorisation by the Chief Minister under the Community Provisions (Restrictive Measures – Iran) (Jersey) Order 2012, as amended, may continue to engage in the authorised activities without breaching the requirements contained in the Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012.

GENERAL LICENCE 5:

HOLDING ACCOUNTS IN THE NAME OF DESIGNATED PERSONS

Maintaining an account

A relevant person who holds an account of a designated person (other than a frozen account) immediately before the coming into force of the Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012 may continue their business relationship with that designated person only to the extent necessary to hold that account.

Reporting requirement

A relevant person who holds an account as described above must report that fact to the Chief Minister as soon as reasonably practicable and, in any event, within 14 days of the coming into force of the Money Laundering and Weapons Development (Directions) (Iran) (Jersey) Order 2012.